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Delayed Time-to-Degree and Post-college Earnings
Dirk Witteveen1, Paul Attewell2
1Nuffield College, University of Oxford, 1 New Road, Oxford, OX1 1NF UK.
Research in Higher Education
|February 25, 2021
Summary
Graduating college later than four years does not affect employment chances but can reduce post-college earnings by 8-15%. However, working full-time while delaying graduation shows no negative impact on future earnings.
Area of Science:
- Higher education research
- Economics of education
- Sociology of education
Background:
- Many undergraduates exceed four years to complete a baccalaureate degree.
- This extended time-to-degree is often viewed as inefficient for students, families, and taxpayers.
- Understanding the consequences of delayed graduation is crucial for educational policy and student guidance.
Purpose of the Study:
- To identify phenomena causing longer time-to-degree and their frequency.
- To estimate the impact of delayed time-to-degree on post-college employment and earnings.
- To analyze the effects of different delay types, including stopping out and employment during college.
Main Methods:
- Utilized nationally representative data from the Baccalaureate & Beyond 1993-2003 surveys.
- Employed negative binomial hurdle models to analyze the relationship between time-to-degree and outcomes.
- Differentiated between various causes of degree delay, such as stopping out and working.
Main Results:
- Delayed time-to-degree was not associated with changes in employment opportunities.
- A delay in graduation was linked to an average decrease of 8-15% in post-college earnings.
- Working full-time during college alongside a delayed graduation did not negatively affect post-college earnings.
Conclusions:
- Delayed graduation's impact on earnings aligns with signaling theory.
- Contrary to popular belief, delaying graduation while working full-time may not be detrimental to earnings.
- Findings suggest a need to reconsider the applicability of human capital theory to delayed college completion and explore time-investment trade-offs.
Keywords:
Bachelor’s degreeDelayed graduationEarningsHuman capitalLabor market outcomesSignallingTime to degreeType of delayWork in collegeMore Related Videos
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